Set up the payroll process before the first shift
Hiring a first employee changes the administrative rhythm of a business. Before the first pay run, make sure there is a clear process for collecting employee details, approved hours, leave information and payroll instructions. That preparation reduces the chance that payroll becomes a last-minute task every cycle.
Because employment rules can be complex, use qualified employment and legal advisers for contracts, awards and workplace obligations. The bookkeeping and payroll process should work from the confirmed information they provide.
First employee payroll checklist
The practical setup will vary, but these questions help an owner organise the basic record and approval process.
- Confirm employment, tax-file and superannuation information through the appropriate channels
- Obtain specialist advice on awards, rates, leave and employment terms
- Set up payroll software and access controls
- Agree on timesheet, roster and approval cut-offs
- Confirm how payslips, superannuation and Single Touch Payroll records will be managed
- Schedule bank reconciliation and payroll-report review after each pay run
Keep the owner in the approval loop
Payroll support does not remove the owner’s responsibility to make sure the information being processed is correct. Put an approval point into the workflow, especially for changed hours, allowances, leave and new starters.
As the team grows, a clear payroll routine helps the bookkeeping records, cash-flow reports and BAS information stay connected.
Build a routine you can keep
The most useful bookkeeping habit is the one that is repeated. Set a regular time to collect source documents, review transactions and ask questions while the detail is still familiar. This is usually more effective than a large clean-up close to a BAS deadline.
A bookkeeper can help design the routine and keep the records current, but business owners still play an important role in approving information and explaining transactions that are not clear from a bank feed.
Know when to ask for specialist advice
Bookkeeping and BAS support are practical services, not a substitute for legal, employment or income-tax advice. Where a question involves awards, contracts, business structure, tax planning or a complex tax position, confirm it with an appropriately qualified adviser.
Linda Kops is a Registered BAS Agent (registration number 26001801). BAS services are provided within that registered scope, with clear records giving your accountant or tax adviser a better starting point.